Bitcoin on the verge of hitting $1 million; Arthur Hayes drops that signal

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Crypto News: Bitcoin (BTC) managed to record a massive surge amid the emerging global banking crisis. The price of bitcoin has risen 26% in the past 60 days, while several major banks have collapsed. However, the co-founder of cryptocurrency exchange BitMEX still stands by his belief that the banking crisis will drive the value of Bitcoin to $1 million.

Also Read: Bitcoin Rally In Sight; US officials seek to save the First Republic

Will the Bank of the First Republic collapse?

Reports suggest U.S. officials are entering urgent rescue talks over the collapse of First Republic Bank (NYSE: FRC). Faced with this situation, Arthur Hayes, former CEO of BitMEX, said another Friday and another US bank is on the verge of a historic collapse by the Federal Deposit Insurance Corporation (FDIC).

Hayes mentioned that the problem with First Republic Bank is the balance sheet containing few Treasuries and a lot of commercial real estate loans. However, these loans are not eligible guarantees for the bank financing program.

He added that until a bank decides to bail out the FRC, it is expected that the bank financing program will allow other types of loans to be eligible to be exchanged for freshly printed dollars. over the weekend. Hayes expects this emerging situation to take the price of Bitcoin to $1 million.

Also read: Bitcoin Bull Run imminent? Hong Kong Central Bank Issues Crypto Notice for Banks

New printed dollars entering circulation will give Bitcoin another leg up as a few more trillions will be added to the tab. He added that the Fed will lead to solve the problem by supporting more of the balance sheet of American banks.

The bitcoin price has risen around 8% in the past 7 days. BTC is trading at an average price of $29,391, at press time.

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